Property glut could push prices down, take years to clear: report

The market is struggling to take up an excess of 31,948 units.

Singapore has a property surplus that can take years to clear, threatening to push down prices, a Bloomberg report revealed.

There is an excess of 31,948 units, citing data from the Urban Redevelopment Authority, and sales have averaged about 2,500 homes per quarter this year, according to Cushman & Wakefield head of research for Singapore and Southeast Asia Christine Li. It is more evident in suburban areas, where 10,538 units are still unsold compared to 8,917 in prime districts.

Sales might fall between 5% to 10% next year amidst a bleak economic outlook, OrangeTee & Tie head of research Christine Sun said. The glut has pushed developers to demand for the 20% stamp duty on foreign buyers be lowered and more time to sell apartments before being hit with levies.

The glut can be traced back to the property boom of 2017-2018 and the en-bloc sale that took over the city. An en-bloc sale happens when a group of owners team up to sell units to developers, the report explained.

Here's more from Bloomberg.